NEW YORK, Sept. 29 (Xinhua) -- U.S. stocks ended lower on Tuesday as investor enthusiasm for AI encountered headwinds from emerging safety warnings and economic data weighed on broader market sentiment.
The Dow Jones Industrial Average fell 131.59 points, or 0.26 percent, to 51,349.92. The benchmark S&P 500 dipped 12.85 points, or 0.17 percent, to 7,670.84, the tech-heavy Nasdaq Composite Index shed 22.84 points, or 0.09 percent, to finish at 26,797.54.
Seven of the 11 primary S&P 500 sectors closed in negative territory, with energy and materials pacing the laggards by falling 0.89 percent and 0.55 percent, respectively. Bucking the downward trend, utilities and communication services led the gainers, advancing 1.14 percent and 0.4 percent, respectively.
The artificial intelligence sector faced renewed scrutiny following a Reuters report detailing a leaked draft initial public offering prospectus from AI developer Anthropic. The document revealed that the company is seeking a valuation of up to 2 trillion U.S. dollars while explicitly cautioning that advanced AI systems could pose existential risks to humanity. Concurrently, rival research lab OpenAI reportedly shelved the release of its latest frontier model following safety concerns identified during internal evaluation.
The broader market for public listings showed signs of strain amid surging government bond yields. Health technology firm Oura abruptly halted its planned market debut on Tuesday, citing heightened market uncertainty.
In commodity markets, crude oil benchmarks retreated as fears of supply disruption eased. Saudi Arabia resumed crude transport via its key East-West pipeline, while U.S. and Iranian representatives engaged through intermediary channels to restart diplomatic talks. Upon settlement, Brent crude for November delivery hovered near 102.6 dollars per barrel, while West Texas Intermediate crude traded at 89.38 dollars per barrel.
On the macroeconomic front, the Conference Board reported that U.S. consumer confidence dropped to its lowest level since 2014. In the labor market, the Job Openings and Labor Turnover Survey showed available positions fell to 7.097 million in August, down from a revised 7.335 million in July and trailing market forecasts of 7.228 million.
Meanwhile, borrowing costs continued to climb alongside elevated U.S. Treasury yields. The average rate on a benchmark 30-year fixed-rate mortgage jumped eight basis points to 7.58 percent on Tuesday, touching its highest level since November 2023 and adding further pressure to housing affordability ahead of Friday's monthly nonfarm payrolls report.
